Revealed - best yields for buy to let landlords with ...

Personal finance website Money has produced a league table of cities where landlords can enjoy strong returns from student tenants.

Top comes Exeter with a claimed annual yield of 10..92 per cent; here over one in ten properties are occupied by students.

Nottingham is next on 10.81 per cent - it has over 60,000 students - and then comes Newcastle upon Tyne at 7.66 per cent.

Oxford and Leicester are also over 7.0 per cent yield. The top 10 is completed by Canterbury, Cambridge, York, Sheffield and Southampton.

Money gives a series of tips for landlords wanting to tap into the student property market:

- Make sure to budget for the extra wear and tear that comes with student properties. You’ll probably need to pay for professional cleaners when each group of tenants moves out;

- You’ll also need to budget for furnishings and white goods, as student properties are expected to be furnished;

- Make sure that you’re investing in an area with lots of students, such as those outlined above, and look into potential rental yields. Many of the best yields are in university towns in the North, where property is usually cheaper;

- Do your research around HMOs (houses in multiple occupation). These are properties with three or more tenants from different households and have their own sets of rules that you must abide by. You’ll probably need a special licence to let one of these;

- You’ll also have to take this into consideration when it comes to insurance, making sure that your policy fully covers an HMO;

- Make sure that your tenancy agreement is watertight and covers all the bases such as how much notice is required if tenants want to move out;

- Consider asking for guarantors before reaching an agreement. You may even ask each tenant to provide their own guarantor.

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